0
0
This Audit and Accounting Guide provides the latest information on accounting and auditing issues affecting the not-for-profit industry. Updated with conforming changes as of March 1, 2008, it includes guidance in planning and performing audits under the risk assessment standards (SAS Nos. 104-111). This edition of the guide has also been conformed to reflect the Defining Professional Requirement standards (SAS No. 102). Furthermore, it provides additional guidance on the auditor's responsibilities as set forth in SAS Nos. 112-114, including identifying and reporting internal control deficiencies, understanding the link between the auditor's consideration of fraud and the auditor's assessment of risk, dating of the management representation letter, and the auditor's communications with those charged with governance.
The guide summarizes applicable requirements and practices, and delivers "how-to" advice for handling audit and accounting issues common to the not-for-profit industry. It describes accounting requirements for fair value measures, contributions, split-interest agreements, investments, net assets, expenses, and includes discussion of other relevant financial statement considerations. The appendices include examples of key provisions of the Risk Assessment Standards, a listing of not-for-profit industry information sources, a listing of relevant AICPA Technical Practice Aids, and an entire re-print of SOP 94-3, Reporting of Related Entities by Not-for-Profit Organizations. The guide covers the following new accounting pronouncements:
FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities—Including an amendment of FASB Statement No. 115
FASB Statement No. 157, Fair Value Measurements and the related FSP FAS 157-2
FASB Intepretation No. 48, Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109 and the related FSP FIN 48-2
For a topical listing of subject matter by chapter, click on the Table of Contents tab.
012648
Recognition
| Benjamin S. Neuhausen, Chair Accounting Standards Executive Committee | Harold L. Monk, Jr., Chair Auditing Standards Board |
Not-for-Profit Organizations Committee (1995-1996)
| Kenneth D. Williams, Chair | John H. Fisher |
| Elaine T. Allen | Mary F. Foster |
| Katherine K. Anderson | Stephen H. Kattell |
| Martha L. Benson | Robert C. Kovarik, Jr. |
| Walter D. Bristol | Richard F. Larkin |
| Gregory B. Capin | Louis J. Mezzina |
| Gregory A. Coursen | Richard E. Mills |
| Lawrence A. Dollinger |
AICPA Staff
| Christopher Cole, CPA, CFE | Joel Tanenbaum, CPA |
| Technical Manager | Technical Manager |
| Accounting and Auditing Publications | Accounting Standards |
The AICPA gratefully acknowledges Gregg Capin, CPA; Frank Jakosz, CPA; Betsy Krisher, CPA, CGFM; Richard Larkin, CPA; Amanda Nelson, CPA; John Ring, CPA; Steve Kattell, CPA; Sheila Birch, CPA; and Nancy E. Shelmon, CPA, for their assistance in reviewing the conforming changes for the March 2008 edition of this guide.
Special thanks to Susan E. Budak, CPA, for her invaluable help in updating and maintaining the guidance in the guide.
The Not-for-Profit Organizations Committee gratefully acknowledges the contributions made to the development, content, and writing of this Audit and Accounting Guide by Alan S. Glazer, Professor of Business Administration, Franklin and Marshall College, and Henry R. Jaenicke, C.D. Clarkson Professor of Accounting, Drexel University.
Guidance Considered in This Edition
This edition of the Audit and Accounting Guide Not-for-Profit Organizations has been modified by the AICPA staff to include certain changes necessary due to the issuance of authoritative pronouncements since the guide was originally issued. Relevant accounting and auditing guidance contained in official pronouncements issued through March 1, 2008, have been considered in the development of this edition of the guide. This includes relevant guidance issued up to and including the following:
FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51
Users of this guide should consider pronouncements issued subsequent to those listed previously to determine their effect on entities covered by this guide. In determining the applicability of a pronouncement, its effective date should also be considered.
The changes made for the current year are identified in a schedule in appendix H of the guide. The changes do not include all those that might be considered necessary if the guide was subjected to a comprehensive review and revision.
Appendix D, which was SOP 98-3, Audits of States, Local Governments, and Not-for-Profit Organizations Receiving Federal Awards, has been converted to a separate AICPA Audit Guide Government Auditing Standards and Circular A-133 Audits. Auditors who perform audits under Government Auditing Standards, the Single Audit Act Amendments of 1996, and Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, should refer to that separate guide.
Auditing Guidance Included in This Guide
Risk Assessment Standards
In March 2006, the ASB issued SAS Nos. 104–111 (the "risk assessment standards"). Collectively, the risk assessment standards establish standards and provide guidance concerning the auditor's assessment of the risks of material misstatement (whether caused by fraud or error) in a nonissuer financial statement audit; design and performance of tailored audit procedures to address assessed risks; audit risk and materiality; planning and supervision; and audit evidence. The most significant changes to existing practice that the auditor will be required to perform are as follows:
The statements are effective for audits of financial statements for periods beginning on or after December 15, 2006. Early adoption is permitted. See appendixG in this guide for a more detailed comparison between the risk assessment standards and the existing standards. This guide has been conformed to the new risk assessment standards.
For additional guidance on the risk assessment standards, please refer to the AICPA Audit Guide Assessing and Responding to Risk in a Financial Statement Audit (product no. 012456) and the AICPA Audit Risk Alert Understanding the New Auditing Standards Related to Risk Assessment (product no. 022526).
Defining Professional Requirements
As previously stated, this guide has been conformed, as applicable, to the standards found in AU section 120, AT section 20, and AR section 20, which were effective upon issuance (December 2005, except for AR section 20, which was issued in December 2007). These new standards define the terminology that the ASB and ARSC will use going forward to describe the degree of responsibility that the requirements impose on the auditor, practitioner, or accountant in engagements performed for nonissuers. Refer to the Schedule of Changes appendix for additional information.
012648
Customer Service
Customer Service
Customer Service
Back to Browsing Products
